French startup Karmen has just landed a fresh $9.4 million to ramp up its instant financing services. The company specializes in offering short-term loans to small and medium-sized businesses (SMEs) that need a quick cash boost to keep operations running smoothly. The funding round, a mix of equity and debt, includes investments from Seventure Partners, Financière Arbevel, and Bpifrance. This comes just months after Karmen secured a €100 million debt facility to fuel its lending operations. With this new cash injection, the startup aims to refine its tech-driven approach to financing. Karmen isn’t alone in this space. Competitors like Silvr, Defacto, and Hero are also vying for a slice of the revenue-based financing pie. The reason? Traditional banks often struggle to meet the needs of smaller businesses, leaving a gap that tech-savvy startups like Karmen are eager to fill. So far, around 600 companies have turned to Karmen for help with everything from buying inventory to funding marketing campaigns. Loan amounts range from €20,000 to €3 million, with repayment terms stretching from two months to two years. On average, clients borrow €200,000 for six months, but the startup caters to a wide variety of businesses—from solo entrepreneurs generating €300,000 annually to larger firms raking in €160 million. What sets Karmen apart is its hybrid strategy. While many clients come directly to the platform, 40% of its business comes through partnerships with fintech companies, ERPs, and e-commerce platforms. The goal? To bump that number up to 75% by the end of 2025. Of course, lending isn’t without risks. Some businesses face challenges repaying their loans. But Karmen relies on a data-driven approach, using 60 financial metrics to assess loan applications in near real-time. The company is also investing in AI-powered risk assessment tools to make smarter lending decisions. With loyal customers like Maison Kitsuné and Balibaris, Karmen is carving out a niche in the competitive fintech landscape. And with this latest funding round, the startup is poised to help even more small businesses stay afloat in tough times. ---